Sedana Medical AB (publ) (STO:SEDANA) just reported and analysts cut their estimates
Sedana Medical AB (publisher) (STO:SEDANA) has just released its latest annual results and things are looking optimistic. This looks like an overall positive outcome, with revenue of kr 159m beating the forecast by 8.6%. Statutory losses of 0.62 kr per share were 8.6% lower than analyst expectations, likely helped by higher earnings. Earnings are an important time for investors because they can follow a company’s performance, look at what the analyst predicts for the next year, and see if there has been a change in sentiment towards the company. With that in mind, we’ve rounded up the latest statutory forecasts to see what analyst expects for next year.
See our latest analysis for Sedana Medical
Given the latest results, the current consensus from Sedana Medical’s sole analyst is for revenue of 234.8 million kr in 2022, which would reflect a major 48% increase in sales over the past 12 months. Statutory losses are expected to climb 57% to 0.25 kr per share. Yet, before the latest results, the analyst had forecast revenue of 250.0 million kr and earnings per share (EPS) of 0.03 kr in 2022. The analyst abruptly flip-flopped on Sedana Medical, administering a small drop in revenue forecasts and reducing the earnings outlook from a profit to a loss.
The average price target fell 7.7% to 120 kr, implicitly signaling that lower earnings per share is a leading indicator of Sedana Medical’s valuation.
Of course, another way to look at these predictions is to put them in context with the industry itself. It is clear from the latest estimates that Sedana Medical’s growth rate is set to accelerate significantly, with forecast annualized revenue growth of 48% through the end of 2022 significantly faster than its historic growth of 34%. per year over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to grow revenue by 18% annually. Taking into account the expected revenue acceleration, it’s pretty clear that Sedana Medical should grow much faster than its industry.
The biggest weakness for us was that the outlook for Sedana Medical went from profit to loss next year. Unfortunately, they have also lowered their revenue estimates, but the latest forecasts still imply that the company will grow faster than the industry as a whole. The consensus price target fell measurably as the analyst seemed unreassured by the latest results, leading to a lower estimate for Sedana Medical’s future valuation.
That said, the company’s long-term earnings trajectory is much more important than next year. At least one analyst has provided forecasts through 2024, which can be viewed for free on our platform here.
Remember that there may still be risks. For example, we have identified 3 warning signs for Sedana Medical of which you should be aware.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.